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JESSE LEE PIT Expansion Application (110 Permit to 112 Permit Conversion) August, 2006 Application Report Page 1 of 3 Jesse Lee Pit is an existing sand and gravel operation originally permitted by State of Colorado, Division of Minerals & Geology (DMG) to Pridemore Construction in July, 1985. The permit was transferred to Ken & Son Trucking in August, 1999 and then to Pelino, Inc. in February, 2006. This operation isolates and de-waters product with diversion ditches and settlement ponds. The de-watered product is moved downhill by bulldozer for removal by front end loader. Product is loaded for trucking or moved to an on-site portable crushing andlor screening operation. The Purpose of this Expansion Application is threefold: 1) To continue reclamation of lands previously mined that aze no longer subject to disturbance; 2) To resolve an historic discrepancy between the northerly boundary of the permitted azea versus the owner's northerly boundary line; 3) To expand the area permitted for product removal. Benefits to Chaffee County and populace will be the continued sales tax revenue from sale of product from the pit, continued revenue to the land owner from sale of product from the pit, and the opportunity for a locally owned and operated construction company to provide in-demand construction materials to the community at a competitive cost. The Jesse Lee Pit is currently permitted for 9.8 acres including approximately 3.5 acres where reclamation is nearly complete. This expansion will enlarge the pit azea to 16.2 acres served by a roadway containing 0.2 acres for a total area of 16.4 acres. As described in the reclamation plan submitted as a part of the application to DMG, reclamation will be ongoing and no more that ten acres will be disturbed at any time. The life of this mine is planned to be through 2015. All reclamation will have been commenced or completed by this time. When reclamation is complete the pit will provide better rangeland and habitat than prior to any mining. Cut slopes will be no steeper than 3H:1 V, considerably less than the natural slopes. The excavation wil] create a gentle slope rising from the confluence of the Arkansas River and Maxwell Creek. The Colomdo Division of Natural Resources requires a "Gravel Pit Well" and an augmentation plan for this operation to disclose that ground water will flow from slopes and into ditches and settlement ponds. This operation will not use any water and it will not generate any waste that would require a sewer system. All flows will be returned to ground water, and no further ground water will be exposed. The applicant has submitted a gravel pit well application (See DMG Application, Exhibit M) and is currently preparing an augmentation plan which will be submitted upon completion. 3